Nvidia Testing Key Ichimoku Support Ahead of Earnings

前天

Upcoming Earnings


The Nvidia Corporation (ticker: NVDA) is scheduled to report earnings after the market closes tomorrow. The consensus Earnings Per Share (EPS) estimate for the fiscal quarter ending October 2024 is US$0.70; the reported EPS for the same quarter a year prior was US$0.38.

Trend Favouring Dip Buying


Ahead of the company’s earnings report later this week, there is no denying that buyers remain in control. Despite a moderate correction in June and July, the NVDA stock has largely been one-way traffic to the upside, up around 180% this year so far.

You will see that the NVDA stock recently established a correction from an all-time high of US$150.00 and is currently testing the Ichimoku’s Base Line (red at US$139.26). Between this value and the Ichimoku’s Conversion Line just above it (Blue at US$143.46), this area, also the case in October, can provide investors with a support zone to work with. Adding to this, you will also see that the Relative Strength Index (RSI) is testing the 50.00 centreline, which can – and often does – provide support for the stock.

In the event that current support fails, Ichimoku traders will be closely watching the Ichimoku Cloud Support zone between the Leading Span B (light orange at US$125.36) and the Leading Span A (light green at US$141.36).

Price Direction?


With the stock trending northbound and the RSI close to testing the 50.00 centreline support, as well as price action currently respecting the lower boundary of the space formed between the Ichimoku’s Conversion and Base Lines, this could be a location that buyers attempt to lift the stock higher.